2Plaintiffs have already filed a motion for summary judgment (Dkt. No. 5 (“SJ”)), and if the Government responds to that motion within the time permitted by the Local Rules, then therewould be sufficient time for the Court to resolve the matter well in advance of the year-end. Butin other cases challenging the IRS Rule, the Government has sought extensions, postponements,and deferrals, thereby successfully delaying adjudication of the merits. Accordingly, Plaintiffsare also moving for a preliminary injunction, but this Court need not act on it if the Governmentresponds with appropriate expedition to the pending motion for summary judgment.
STATUTORY, REGULATORY, AND FACTUAL BACKGROUNDA.
Congress Authorized Subsidies To Encourage States To Establish InsuranceExchanges, But Most States Nevertheless Declined.
The Patient Protection and Affordable Care Act (“ACA” or “the Act”) regulates theindividual health insurance market primarily through insurance “Exchanges” organized alongstate lines. Congress determined that it would be preferable for the states themselves to establishand operate these Exchanges. Accordingly, the Act provides that “[e]ach State shall … establishan American Health Benefit Exchange … for the State ….” ACA, § 1311(b)(1).The federal government cannot, however, constitutionally
sovereign states tocreate Exchanges. The Act therefore recognizes that some states may decline or fail to do so.
ACA, § 1321(b)-(c). Section 1321 of the Act therefore authorizes the federal government toestablish fallback Exchanges in states that do not establish their own.
ACA, § 1321(c). TheACA thus provides for two basic types of Exchanges: those established by states under § 1311,and those established by the federal government under the § 1321 fallback.To encourage states to establish Exchanges, the Act authorizes premium assistancesubsides for state residents who purchase health coverage through state-established Exchanges.These subsidies are available only to those who enroll in coverage “through an Exchange
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